A change in the demand for a normal good can result from a change in _____.
A) its price
B) the number of ﬁrms in the market
C) the cost of inputs
D) consumers' income

Question

Quizplus · Accepted Answer

Changes in consumers' income can affect the demand for a normal good. When income increases, demand for normal goods typically increases, and when income decreases, demand for these goods typically decreases. Changes in the price of the good itself, the number of firms in the market, or the cost of inputs are factors that affect supply or the quantity demanded, not demand itself.

A Change in the Demand for a Normal Good Can